Renewable energy tax incentives
Renewable energy tax incentives Government is encouraging investment in renewable energy but as always, there are caveats. While this year’s Budget was largely devoid of surprises, Finance Minister Enoch Godongwana made one announcement that was widely anticipated following President Cyril Ramaphosa’s State of the Nation speech, and will hopefully help taxpayers alleviate some of […]
Maximising your dividend income
You could improve your return by selling the share instead of waiting for the dividend payout but there are caveats. I was recently asked an interesting question about dividends. The person concerned was curious as to whether from a tax and return perspective it is better to take the dividend itself, or sell the share […]
The seven myths of investing
The misguided assumptions that exist in financial markets. Myths are widely held beliefs that are mistaken as truths. For example, for long periods of time, people believed (and acted) as if the world was flat. Below are similarly misguided assumptions that exist in the financial markets that I have come across during my investment career. […]
Banking on the banks
SA’s major banks show a robust recovery, delivering strong financial performance despite complex conditions. Trading conditions in South Africa began 2022 with momentum, as the first quarter GDP figure reflected an economy that returned to pre-pandemic levels. This outcome was underpinned by the lifting of lockdown restrictions, strong terms of trade, and high commodity prices. […]
Retirement and your ‘second wind’
With improved healthcare and the trend towards healthier lifestyles, many people are living to a ripe old age. Make sure that your money lasts as long as you do. Are you retiring in the near future and concerned that you may not have enough capital to retire? We often read that the majority of South […]
Suretyship Agreements: What are they and what are the requirements
A deed of suretyship is an agreement that is concluded by a creditor and a third party. The essentialia of this type of agreement are that the surety (third party) undertakes to be liable to the creditor for the due performance by the debtor of his or her obligations in terms of the principal debt. […]
SARS helping businesses lessen the tax load
The last few months have been extremely tough for small business owners as a result of the global COVID-19 pandemic, and various lockdown measures that have created a challenging trading environment. The South African Revenue Service (“SARS”) has identified this hardship, and as a result, the National Treasury recently tabled the Disaster Management Tax Relief Administration Bill, which would assist micro, small and […]
Clearing loan accounts through dividends
In terms of the Tax Administration Act, the South African Revenue Service (“SARS”) can issue, in response to an application, Binding Private Rulings (“BPR”) and clarifies how the Commissioner would interpret and apply the provisions of the tax laws relating to a specific proposed transaction. BPR 346 determines the income tax and dividends tax consequences of the redemption of intra-group loans […]
What to expect this tax season as an individual taxpayer
The tax season is swiftly approaching. For many people, it’s a time of the year that they dread. When it comes down to it, tax can become complicated mess that involves a lot of maths and calculations that just doesn’t come naturally to most. For those of us who don’t have PhDs in accounting or […]
Valuation of trading stock for tax purposes
In 27 September 2019, just over a year since delivering judgement in another matter with very similar facts, the Supreme Court of Appeal in CSARS v Atlas Copco South Africa (Pty) Ltd (834/2018) [2019] ZASCA 124 gave a judgement on the valuation of trading stock for income tax purposes. The general (and oversimplified) principle is that taxpayers are allowed, as a deduction, the value […]